Growing up, my family would buy either Gardenia, Bonjour or Sunshine branded bread. After picking up investing few years ago, I realised all of them belongs to publicly listed companies on Singapore Exchange.
Sunshine bread belongs to Auric Pacific Holdings. The rest belongs to QAF Limited and they are distributed in Singapore, Malaysia, the Philippines and Australia.
QAF Limited [S$700m market capitalization] manufactures and distributes bread, bakery, and confectionery products. The company offers packaged loaf bread, pastries, and bakery products.
The company was formerly known as Ben and Company Limited and changed its name to QAF Limited in October 1984. Their award-winning bread clinched the prestigious Platinum Award given by Agri-Food & Veterinary Authority (AVA) for achieving Grade A status in the Food Safety Excellence Scheme for 20 consecutive years.
QAF is in expansion mode and their new bread plant in Johor Technology Park, Malaysia will be ready by first quarter of 2017. The plant has the capacity to produce 8,000 loaves of bread and 20,000 pieces of tortilla wraps per hour. Earlier this year, in January, Gardenia Bakeries Philippines opened their P1-billion plant in Laguna that is capable of producing 150,000 loaves per day or a 50 percent increase from its current production capacity. Latest baking technologies from Germany, Netherlands, United States and Japan have been applied on the plant’s production line.
In Metro Manila, Gardenia has over 60% market share.
Last year, Gardenia was appointed the official bread supplier for the first National Youth Games of the People’s Republic of China.
QAF’s is managed by Mr. Tan Kong King who continues to hold this post after 20 years and he is instrumental in streamlining the operations of the business. QAF’s last twelve months (LTM) revenue stood around S$949mil and it reported a net profit of $63mil. QAF’s share performance year till date was an increase of 18% based on 13 October’s closing price.
I am surprised that QAF has 14 directors on their board! On average, a listed company will have 6 – 9 directors. It would be good to find out their rationale of having so many directors.
Did you know that there is a day that is dedicated to bread? That’s right. World Bread Day is happening on 16 October, this coming Sunday!
What is your favourite bread brand? Let us know in the comments section below!
*disclaimer: This article and its contents contain opinions and ideas of its author. It is not a recommendation to purchase or sell securities of any of the companies or investments herein discussed. The article is written with the understanding that its author is not engaged in rendering legal, accounting, investment or other professional services. If the participant requires expert financial or other assistance or legal advice, a Competent Professional should be consulted. The author will not guarantee the accuracy of the information contained in the article. The author has no vested interest in the above company, however, the author (Kelvin) is vested in Auric Pacific Holdings.